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IRA Contributions after the SECURE Act

IRA contribution

Following our articles last week – SECURE Act RMD Rules and The SECURE Act and Student Loans – today we’ll cover IRA contributions after the SECURE Act. A big change in store here for folks who are still working later in life, but not really earth-shattering.

With the passage of the SECURE Act, the prohibition for IRA contributions after age 70½ is lifted. Previously, once you hit that magical age, you were no longer allowed to make contributions to an IRA.

Employer plans, such as the 401(k) have always allowed contributions to continue as long as the employee was still employed at that company. If the employee is also a 5% or greater owner, however, the 401(k) contributions past age 70½ are disallowed (and have been for a long time). This did not change with SECURE.

Now that SECURE has passed, as long as you have earned income, you can make contributions to an IRA (or Roth IRA), no matter what your age is.

Like I said, nothing really earth-shattering about this, although it does give some taxpayers more time to make contributions to IRAs if they’re still working.

I imagine one of the bigger questions in the minds of folks nearing (or over) age 70½ is the subject of my next article – Qualified Charitable Contributions after SECURE (QCDs). Stay tuned!


  1. J M Kroll says:

    Hi Jim, thanks for the info. A quick question regarding IRA contributions. I am 67 & retired with no EARNED income (not working). If I were to secure a part time job can I then contribute to a IRA? If so what would be the maximum amount a year that I could contribute? Thanks!

    1. jblankenship says:

      The maximum contribution (for 2020) is the lesser of your earned income or $7,000 ($6,000 regular contribution plus $1,000 catchup since you’re over age 50).

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